NEW YORK, July 15 (IFR) - Credit Suisse has won a US$3.7bn bid list of 179 legacy non-agency RMBS bonds, market sources said on Tuesday, the biggest sale of its kind since the crash.
The cover bid - the second-best offer for the list - was 73 cents on the dollar, a portfolio manager said.
Price talk had ranged between 20 to 90 cents for most items on the list, but the sale also included a small portion of prime securities which were talked above par, as well as a few out-of-the-money positions being offered at low low-single digits.
“The question is, how much is Credit Suisse left with after filling client orders?” said Adam Murphy, president of Empirasign Strategies, a capital markets trade database.
The seller, a structured investment vehicle (SIV) controlled by the bad-bank arm of UBS, according to the sources, hired BlackRock Solutions to run the “all-or-nothing” style auction, which only accepted bids for the entire list of bonds.
On offer were mostly subprime and home-equity RMBS bonds held by the SIV since the financial crisis.
“It is incredibly strong and likely sets the market higher,” the portfolio manager said.
Calls to Credit Suisse were not immediately returned. (Reporting by Joy Wiltermuth; Editing by Natalie Harrison)